Advertising provides consumers with product information and can promote competition. Thus, it is always welfare enhancing.

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Oluwafemi Ayodele · Accepted Answer

Final Answer : False, Explanation :  While advertising can provide consumers with product information and promote competition, it can also mislead consumers, create unnecessary wants, or lead to less competition in cases where large firms dominate advertising space, potentially reducing overall welfare.

Advertising provides consumers with product information and can promote competition. Thus, it is always welfare enhancing.

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